2014 fiscal summit book

8/12/2019 2014 Fiscal Summit Book

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Summary and HighlightsMay 14, 2014 | Washington, D.C.


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Peter G. Peterson Found

The Peter G. Peterson Foundation held its fifh annual Fiscal Summit on May 14, in Washington, D.C. The Summit, titled Our Economic Future, convened a rangthe nations preeminent thought leaders and policymakers to discuss the conne

between fiscal health and economic strength.Building a strong fiscal oundationwhere spending and revenue are in

eral balance and the long-term debt is stabilized at a reasonable levelwill

ensure the conditions or economic growth and opportunity or all Americansproving our long-term fiscal picture will help oster an environment with ger access to capital, more private investment, improved business and coner confidence, and the ability to invest in priorities like education, research development, and inrastructure.

The 2014 Fiscal Summit explored what we, as a nation, have to gain i we actto strengthen our fiscal oundation; promote a growing, thriving economy; and enthat our uture isnt diminished by our past.

Introduction


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About the Peter G. Peterson Foundation

Founded in , the nonpartisan Peter G. Peterson Foundation is dedicated

to increasing public awareness o the nature and urgency o key fiscal challenges

threatening Americas uture and accelerating action on them. To meet these

challenges successully, the Foundation works to bring Americans togetherto find sensible, sustainable solutions that transcend age, party lines, and

ideological divides. Since its launch, the Foundation has invested significantly

in grants and projects related to public engagement and the study o fiscal

policies and potential solutions.

2014 Fiscal Summit:Our Economic Future

Welcoming Remarks

Pete Peterson,Chairman, Peter G. Peterson Foundation

Opening Remarks: Our Economic Future

Michael A. Peterson, President and Chie Operating Officer, Peter G. Peterson Foundation

Macro Perspectives: Viewpoints On Economic Growth and Fiscal Reform

Glenn Hubbard,Dean and Proessor o Finance and Economics, Columbia Business School

Alan Krueger,Proessor o Economics and Public Affairs, Princeton University

MODERATOR:Lori Montgomery,Reporter, The Washington Post

Congressional Leaders: Long-Term Fiscal Planning in a Short-Term Political World, Session One

Senator Patty Murray (DWA), Chairman, Senate Budget Committee

Senator Rob Portman(ROH), Member, Senate Budget and Finance Committees; Former Member,Joint Select Committee on Deficit Reduction

INTERVIEWER:Nancy Cordes,Congressional Correspondent, CBS News

Investing in Americas Future: Policy Choices for Shared Prosperityand Growth

President Bill Clinton,Founder o the Bill, Hillary, & Chelsea Clinton Foundation and42nd President o the United States

INTERVIEWER:Gwen Ifill, Moderator/Managing Editor, Washington Week;Co-Anchor/Managing Editor,PBS Newshour

Lessons from the Statehouse: Balancing Fiscal Reform with Pro-Growth Investments

Governor Chris Christie (RNJ

INTERVIEWER:Bob Schieffer,Chie Washington Correspondent and Anchor oFace the Nation,CBS News

The Effects of Long-Term Debt on Market Conidence and EconomicGrowth

Alan Greenspan, President, Greenspan Associates; Former Chairman, Federal Reserve Board

INTERVIEWER:Ben White,Chie Economic Correspondent,Politico

Powering the Economic Engine: Perspectives on Investing in Growth, Innovation, and Competitiveness

Sheila Bair, Former Chairman, Federal Deposit Insurance Corporation; Senior Advisor,The Pew Charitable Trusts

Erskine Bowles,President Emeritus o the University o North Carolina; Co-Chair o the NationalCommission on Fiscal Responsibility and Reorm

John Engler,President, Business Roundtable

MODERATOR:Peter Cook,Chie Washington Correspondent, Bloomberg Television

Congressional Leaders: Long-Term Fiscal Planning in a Short-Term Political World, Session Two

House Democratic Leader Nancy Pelosi (DCA

Representative Peter Roskam (RIL, Member, Committee on Ways and Means

INTERVIEWER:Nancy Cordes,Congressional Correspondent, CBS News

Peter G. Peterson Founda


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| Fiscal Summit Peter G. Peterson Founda

WelcomingRemarks

Pete Peterson

PETE PETERSON, Chairman and Founder o the Foundation,

welcomed attendees to the 2014 Fiscal Summit, s etting the stage or

the days program. Peterson gave a brie overview o the Foundations

work as a nonprofit, non-partisan organization dedicated to increasing

awareness o the long-term fiscal challenges threatening Americas u-

ture and to accelerating action on them.

Under Petersons leadership, the Fiscal Summit has become the pre-mier annual gathering ocused on addressing our nations long-term

debt and economic uture. Now in its fifh year, the Fiscal Summit is a

key part o the Peterson Foundations work to build consensus and sup-

port or putting America on a sustainable long-term fiscal path, which

will help ensure economic growth and opportunity or all Americans

in the decades to come.

Calling our nations unsustainable long-term fiscal outlook a central

threat to the uture economy, Peterson discussed the need to address

Americas fiscal imbalance so that we have the resources to invest inour own uture. He noted that economists agree on the importance o

increasing investment in priorities like education, skill training, re-

search and development, and inrastructure in order to compete in the

knowledge-based, global economy. But i were going to invest more,

he said, the uncomortable question is, Where do we get the resources

to invest?He said that in 25 years interest costs alone are projected to reach

a level that is more than our times what the government historically

spends on education, inrastructure, and research and development,threatening to crowd out these essential investments. Interest, he

said, buys us nothing. Its essentially about the past and not the

uture. Underscoring his belie that we need to protect and bolster

the still-recovering economy in the short term, while addressing our

projected long-term fiscal challenges in the decades ahead, he added,

[T]his set o acts, to me, makes clear the critical need [to] both

reduce our debt [and] find the resources or investment.

Pete PeterChairm

Peter G. Peterson Foundat


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Peter G. Peterson Founda | Fiscal Summit

Opening Remarks:Our Economic Future

Michael A. Peterson

MICHAEL PETERSON, President and Chie Operating Officer o the Foundation,gave opening remarks, highlighting the connection between the nations fiscal outlook

and economic growth. Peterson pointed out that while the economy has improved,

there is still much work to be done, as unemployment remains high, growth is

sluggish, and too many American amilies have yet to eel economic relie.

While some have become afflicted with debt atigue and the political paralysis

that comes in an election year, Peterson argued that now more than ever, its critical

to remember the connection between our fiscal outlook and our economic health.

Describing sound fiscal policy as the pathway to a brighter economic uture,

Peterson underscored the importance o activating powerul drivers o growth,including greater access to capital, more confidence, increased private investment,

and more resources to invest, boosting productivity and innovation. In these and

many other ways, he said, a solid fiscal oundation supports a vibrant economy

with rising wages and more mobility and opportunity or Americans.

Peterson noted that voters widely share the view that our fiscal health is connectedto our economic strength, citing the results o a recent national poll commissioned

by the Foundation. The survey ound that 91 percent o Americans agree that a

stable fiscal oundation will help the economy grow, and 80 percent agree that

mobility and opportunity will improve i the United States reduces its debt. Theseresults spanned ideological and socio-economic backgrounds.

Concluding his comments with a positive uture outlook, he said, The good

news is that we can still make the right choices to ensure economic prosperity

or America. There are policy decisions to make and politics to overcomebut

ultimately, its simple math. We know the problem, and the solutions are right in

ront o us. Its time to get it done.

Michael A. PeterPresident and Chief Operating Offi

Peter G. Peterson Foundat


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THOUGH THEY SERVED under presi-

dents o different political parties, two o

the nations leading macroeconomists

ound much to agree on in a discussion

about the economic implications o

long-term debt. Interviewed by The

Washington Posts Lori Montgomery,

Glenn Hubbard and Alan Krueger

explored policies to spur economicgrowth, including tax reorm,

immigration, and public investments in

areas like inrastructure, job training,

and education.

Hubbard, Chairman o the Council

o Economic Advisers under President

George W. Bush, outlined what he

called the nations three big economic

challenges: recovery, long-term growthand balance. He noted, I think Pete

Peterson had it exactly right ... this is

about uture orientation versus past

orientation. We risk becoming a nation

o entitlements and interest payments,

not able to make the investments in ourlong-term uture.

Krueger, who served as Chairman othe Council o Economic Advisers under

President Barack Obama, added, I

think our problem is not the near-term

deficit. Its the intermediate and the

long-term. We have it within our means

to address it. I think the outlines were

there in Bowles-Simpson and in grand

bargain negotiations.

economists strongly agreed re

needed, though they expressed

differences on where to targ

reorm. Hubbard advocated lo

marginal rates and broadening

base or individuals and corpoin order to increase economic g

Krueger saw the corporate side

code as most in need o reorm,

its hard to conceive o a wo

code than the one that we have

corporate side. [It] doesnt raise

revenue, it gives incentives t

money abroad, it gives incenti

inversions o companies. It deconomic activity in all kinds o

Closing on an optimistic not

cited immigration reorm as a pro

way orward or a Congress that h

too divided to make progress on

major legislation. Krueger said, immigration reorm is probab

lowest-hanging ruit as ar as ec

and fiscal policy goes. Hagreed, adding, It should be i

sides economic and political inte

accomplish that. And it would

a signal ar beyond immigration

that says, Look, we can talk ab

things that are contentious and c

a solution.

Discussing whats best or the re-

covery, Hubbard said, In my mind,

the economy needs a jolt. And the jolt

would be something that improves busi-

ness peoples long-term confidence.

That would be tax changes, tax reorm,

trade reorm, immigration reorm, but

yes, also public spending.

Krueger agreed with Hubbard, add-

ing that there must be a strategy to

ocus specifically on the middle class.

Framing the problem as a middle-

class jobs deficit, he highlighted edu-

cation and inrastructure as powerul

investments in this area.

When it comes to tax reorm, the

Macro Perspectives:Viewpoints on Economic Growth and Fiscal Reform

Glenn Hubbard and Alan KruegerMODERATOR:

Lori Montgomery

Glenn HubbardDean and Professor of

Finance and Economics,Columbia Business School

Alan KruegerProfessor of Economics

and Public Affairs,Princeton University


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Congressional Leaders:Long-Term Fiscal Planningin a Short-TermPolitical WorldSession OneIN ORDER OF APPEARANCE:

Senator Patty MurraySenator Rob PortmanINTERVIEWER:

Nancy Cordes

IN THE DAYS FIRST INTERVIEW

with an elected official, Senate Budget

Committee Chair Patty Murray assessed

whats happened in the year since she

appeared at the 2013 Fiscal Summit,

including the government shutdown,

the sequester, and the budget deal sheorged with House Budget Committee

Chair Paul Ryan. Interviewed by CBSs

Nancy Cordes, Senator Murray said

that trust was critical in achieving herbipartisan deal with Chairman Ryan

but that huge challenges remain in

the areas o fiscal responsibility and

investments the country can make tomake sure were competitive in the

global marketplace. Cautioning that

big deals are hard, Murray specifically

cited immigration reorm and a

transportation bill as areas o ocus that

could help promote economic growth in

the short run and ultimately put us on

sounder fiscal ooting.

Murray said its clear that short-term

deficits have been reduced significantly,

but where we have a challenge is in the

long run. And the drivers o that long-

run fiscal challenge [are] the cost ohealthcare and interest. She named

the tax code and entitlements as parts

o our budget that have a huge impact

and have to be addressed to deal

with the long-term fiscal challenges

that we have.

When looking at long-term fiscal

solutions, Murray stressed two keyunderlying principles: [First,] we cantdo it in a way that upsets our economy.

And secondly, we have to do it in a

balanced way. She said its important

that comprehensive solutions look at

how everybody in this country, rom

the smallest person to the wealthiest

person, contributes a air share.

Murray also highlighted the dangers

o what she calls Americas education

deficit and inrastructure d

noting that we are alling behind

competitors in both areas. She

that investing in these prioritieis important to economic grow

competitivenessand will help

lize our uture fiscal outlook: W

just continue to cut education a

search and development and our

structure and say, Thats balanc

budget and well be fine in the u

In talking about the act th

current budget deal expires at to 2015, Murray said that I w

listen to each other and learn teach other, i we find common g

rather than throwing political po

each other, and i we agree that g

ing by crisis is not what the Am

people deserve, Congress will b

to come to an agreement once ag

FOLLOWING his Democratic coll

Senator Rob Portman discussed

Patty Murray(DWA) Chairman,

Senate Budget Committee


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Peter G. Peterson Foundat | Fiscal Summit

Rob Portm(ROH) Mem

Senate Budget Finance Committ

Former Member, JSelect Committe

Deficit Reduc

unsuccessul efforts at achieving

comprehensive fiscal reorm, expressing

hope that progress could be madeollowing the mid-term elections.

Portman argued that long-term debt

affects our economy today and that

certainly its unair, even immoral to

[pass on] to uture generations.

In particular, Portman saw tax

reorm as an area ripe or compromise

in early 2015. The Senator said he

believes there is an interest in Congressto explore tax reorm that is pro-

growth, and that will reduce the deficit

at the same time. He warned that i we

ail to update our tax code, particularly

on the corporate side, we will continue

to lose jobs and opp ortunity.

Portman also stressed the importance

o ocusing on the mandatory sideo spendingnot just discretionary

programsas we seek to address the

true drivers o our long-term structural

imbalance. He said mandatory entitle-

ment programs are vital but must

be reormed in order or them to be

sustained over time. Portman also

identified healthcare as a critical area to

address, arguing that we need to do moreto change the ocus rom procedure to

outcomes.

And while some point to reduced

near-term deficits as a sign that ur-

ther reorm is unnecessary, Portman

cautioned that the act is that based

on independent analysis rom the non-

partisan Congressional Budget Office,were looking at trillion dollar deficitsagain within the next 10 years.

Taking an optimistic view, Portman

urged the importance o taking ull

advantage o 2015, particularly the first

six months o that year, when maybe

therell be a little less politics, I hope,

to try to make some o these changes,

and do it, again, with the administra-

tion working with Congress.

Nancy CordesCongressional Correspondent,CBS News


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Investing inAmericas Future:Policy Choices forShared Prosperityand Growth

PresidentBill ClintonINTERVIEWER:

Gwen Ifill

IN A WIDERANGING DISCUSSION with PBS journalist Gwen

Ifill, President Bill Clinton covered topics including long-term

debt, income inequality, social mobility, economic growth,

healthcare costs, immigration, tax reorm, and oreign policy. This

marked President Clintons fifh appearance at the Fiscal Summit.

Throughout the conversation, the President applied lessonsrom his administration to the current economic and fiscal con-

dition. He lamented that as we continue to emerge rom the

Great Recession, the United States has been slipping on social

mobility compared to other countries around the worldwhich

has contributed to rising inequality.To address this growing inequality, Clinton advised that the

main thing is we need a s trategy that will increase employment

and change the job mix, with an end goal o more vigorous job

growth, [and] a tighter labor market, which will raise incomes.He also stressed the importance o preschool, technical, and

career education. Noting the importance o reducing inequality,

he said, what we should be trying to do is make sure that were

all growing in real terms together. And having the right budget

or the government and the right investment strategy is a part

o it.

President Bill ClinFounder of the Bill, Hillar

Chelsea Clinton Foundatand 42nd Presidof the United Sta

Gwen IfillModerator/Managing Editor,Washington Week;Co-Anchor/Managing Ed itor,PBS Newshour


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Talking about the recent economic crisis and recPresident Clinton said, [T]hats whats been so chall

about the subject that brings everybody together here

Peterson Foundation. We have a long-term debt issu

have long-term age distribution issues, aggravated

act that we have not passed immigration reorm, w

think would ease a lot o these other problems.

On that subject, the President made the case

bipartisan immigration reorm plan would be an eco

and social good that would help improve growtcompetitiveness. Id like to see immigration reorm

has to be seen as an economic issue, he said. [T]he

is that i we did immigration reorm right, it would

more jobs we need young immigrants, not only b

o their ideas and their energy, [but] to continue t

the economy.

President Clinton made a strong case or corpor

reorm, in order to unlock as much as $1 trillion in ca

outside the United States through repatriation, statiwe are now the only wealthy country that taxes corpo

on the money they earn somewhere else when they b

home. He argued that coming to an agreement on al

that money to flow back to the United States will in

private investment and boost e conomic growth.

The President highlighted recent improveme

healthcare cost growth but said we need to do

more to change our system o paying or procedurperormanceechoing the comments o Senato

Portman and others throughout the day. [W]e have

have a healthcare delivery system that gets better

and is more in line with what our competitors pay, h

citing a breathtaking gap between the United Stat

other countries around the world that spend less but a

better outcomes.

And as part o his concluding remarks, President Csummarized why its important to continue to careour long-term fiscal challenges and economic g

The thing I like about this Peterson [Summit] is I

a lot o people think that we should have stopped t

about the deficit and the debt when the economy was

On the other hand, to pretend that there are no lon

demographic changes or healthcare drivers here is

And I think [that] continuing to ocus on things li

matters it keeps us ocused on these things that wil

the possibilities or America in the uture.


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DURING LUNCH,attendees enjoyed a lively conversation betwee

Jersey Governor Chris Christie and CBSs Bob Schieffer. New Jersey

ernor compared the budgetary challenges he aces at the state leve

issues that ederal policymakers grapple with. In particular, he con

the ederal budget process, which routinely produces deficits, witJerseys constitutional requirement to balance its budget.

Christie also detailed how ederal policy changes can have a sign

effect on state coffers, saying that increased ederal income tax ra

the wealthy caused some New Jersey high-earners to accelerate i

resulting in significant state revenue shortalls this year.

When asked by Schieffer about his budget priorities and chall

Christie discussed the effect o entitlementsstate employee pensi

ments and health insurance and interest costs on New Jerseys ab

invest in additional discretionary priorities like education or inrature. He said this issue is similar to the ederal fiscal challenge, wh

need to do other things, like tax reorm and entitlement reorm,

country to create opportunity or people to have a greater lie tha

parents have had.

Another point o discussion was New Jerseys recent successul

initiative that raised the state minimum wage by $1.25. Christie ou

his support or a minimum wage increasebut emphasized that he

have preerred a phase-in, rather than immediate implementatio

view, he said, is absolutely we should be raising minimum wagwe need to do it in a responsible, graduated way, so that business

prepare or the impact.

Christie also discussed his efforts to work across the aisle an

common ground with political adversaries. I think what [the Repu

party needs to be ocused on is explaining ourselves and not appea

be intolerant, he said. Asked about breaking through partisan gr

Christie responded, Well, listen, I can only analogize to my experiNew Jersey. And Ive had a Democratic legislature my entire time, a

by a small amount. Im working with Democratic leaders o the legion everything that we have to get done.

When Schieffer asked whether Christie is considering runn

president and when he might make a decision, his answer was sho

to the point: Yes, and later.

And talking about the prospects or progress on key fiscal issues

publicans win the Senate in 2014, Christie said that scenario would

an extraordinary opportunity, particularly on issues o trade and

orm, that the president could find areas o compromise with Repub

Lessons from the Statehouse:Balancing Fiscal Reform with Pro- Growth Investments

Governor Chris ChristieINTERVIEWER: Bob Schieffer

Governor Chris Christie (RNJ)

Bob SchiefferChief Washington Correspondentand Anchor of Face the Nation,CBS News


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IN CONVERSATION WITH POLIT ICO S BEN WHITE, Dr. Alan Greenspan

tackled a range o questions on fiscal, economic, and monetary policy. Talking

about the current economic condition, Dr. Greenspan saw positive signs or

increased growth, but also structural problems, including our long-term debt,

that make it difficult to really surge orward.

In addition to the generally recognized level o ederal debt, Dr. Greenspanalso argued that the nation is on the hook or significant contingent liabili-

ties, in the orm o entities that remain too big to ail. He noted that the

saest thing politically to do is always to bail out somebody rather than not

[to] bail [them] out. He added, This is undamentally different rom the

way it was many years ago.

Asked about the lasting effect o market bubbles on the overall economy,

Dr. Greenspan offered a historical look at major episodes, including the

stock market crashes in 1929 and 1987, and the more recent dot-com andhousing bubbles. He explained the reason the housing bubble was much more

economically damaging than, or example, the dot-com boom and crash, was

because the toxic asset in that instance was held by a highly leveraged group

o peoplemaking the contagion even more dangerous.

Dr. Greenspan also highlighted the way that government debt crowds out

private investment, describing the relationship between high ederal spendingand domestic savings rates. The basic issue, he said, is that were just

not saving enoughresulting in lower private investment. Unortunately,

Greenspan concluded, So long as that phenomenon continues, were goingto get a sluggish economy. Were not going to get the revenues on the tax side

which will und these entitlements.

Asked about stagnant wages and slack in the labor market, Dr. Greenspan

identified the main problem as the act that theres an extraordinarily large

amount o marginally low-income workers, which are a unction, essentially,

o the slowness in economic growth. However, he added, I we got growth up

to 4 percent, that problem would disappear overnight.

The Effects ofLong-Term Debt onMarket Confidenceand Economic Growth

Alan GreenspanINTERVIEWER: Ben White

Ben WhiteChief EconomicCorrespondent, Politico

Alan GreenspPresident, Greenspan Associa

Former Chairman, Federal Reserve Bo


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Powering the Economic Engine:Perspectives on Investingin Growth, Innovation, andCompetitiveness

Sheila Bair, Erskine Bowles,John EnglerMODERATOR:Peter Cook

BLOOMBERG TELEVISIONS PETER COOK led an animated

conversation among a diverse panel with expertise in the

worlds o business, education, research, and government. All

three panelists painted a picture o a country that remains in a

perilous position but, with a ew key policy decisions, is poised

to return to fiscal stability and strong economic growth.

Erskine Bowles observed that when it comes to fiscal

reorm, weve already done what he called the easy stuff

and the stupid stuffbut, unortunately, we continueto avoid doing the tough stuff. John Engler, weighing in

rom the business perspective, said I think theres plenty o

evidence that a long-term deal would produce great benefits

or the American economy and or the amilies o America.

All agreed that the lack o a plan to address ourunsustainable long-term debt will, eventually, have negative

macroeconomic effects. Sheila Bair said that the United

States currently benefits rom a lack o alternatives in the

global economy. But she warned that this cant last orever the world is getting ed up with us. When you have your

central bank start financing your government it always

leads to hyperinflation. Eventually, those chickens will come

home to roost. Bowles agreed, saying that sooner or later

the markets will wake up.

Looking to incremental progress in the absence o a

comprehensive fiscal grand bargain, all three pa

endorsed tax reorm, immigration, and inrastr

investment as areas that will create growth and impr

long-term standing.

On tax reorm, Engler said our current policy is

wrongheaded and, like many o the days guests, adv

or a corporate tax reorm that allows oreign earn

return to the United States or investment here. Bair

that the distortions in the tax code lead to harmul behparticularly in our current low-interest rate environm

corporations issue debt to pay dividends and stock bu

which she characterized as taking on more leverage t

their share price. Bowles added that reorming the tax

essential in order to become more globally competitiveResponding to a question rom the audience,

agreed that investment in inrastructure is a win-win

it comes to adding jobs and economic growth, wh

providing sorely needed upgrades to a crumbling digiphysical national inrastructure.

Highlighting the need or bipartisan cooperation,

quoted his partner in fiscal reorm, saying, And as my

Simpson, says, I you cant compromise without compro

your principles, you better never get in business, you

never be a legislator, and or Gods sake, never get marr

John EnglerPresident,Business Roundtable

Erskine BowlesPresident Emeritus of the

University of North Carolina;Co-Chair of the National Commission on

Fiscal Responsibility and Reform

Sheila BairFormer Chairman,Federal Deposit InsuranceCorporation; Senior Advisor,The Pew Charitable Trusts

Peter CookChief Washington Correspondent,Bloomberg Television


14/17


HOUSE DEMOCRATIC LEADER Nancy

Pelosi led the afernoon session with

elected officials, ocusing squarely oneconomic growth as a necessary part

o improving our nations long-term

fiscal outlook.

Leader Pelosi highlighted interestcosts as a particularly harmul effect o

growing long-term debt, which has an

opportunity cost or investments in edu-

cation, scientific research, and [more].

On the recent congressional debateabout tax extenders, Pelosi strongly

advocated that extending these tax

policies should be paid or or offset

with commensurate reductions in

spending or increases in revenue.

Moreover, she laid out criteria ordeciding which should be extended in

the first place. Policymakers, she said,

should ask about each tax break, How

does it grow the economy? How does

it create jobs? Is it worth even doing?

Pelosi pointed out that the total oall tax expendituresthat is, taxes

that are not paid due to exclusions or

loopholes in the tax codeis nearly asmuch as the total o all taxes that are

paid in the country. She advocated or

revenue-raising tax reorm that would

reduce both corporate and individual

rates, while removing tax loopholes

that arent efficient or deensible.

Pelosi saw investments in education

Congressional Leaders:Long-Term Fiscal Planningin a Short-TermPolitical WorldSession TwoIN ORDER OF APPEARANCE:

House Democratic LeaderNancy Pelosi

RepresentativePeter RoskamINTERVIEWER:

Nancy Cordes

Nancy Pe(DC) House Democr

Lea


15/17


and job skills as a critical actor

in ostering economic growth and

improving our overall fiscal picture:

Nothing brings more money [tothe treasury] than investments in

education. Early childhood, K-12,

higher [education], post-grad,

lietime learning We need a skilled

workorce.

Reflecting on the ailed fiscal

negotiations rom the past several

years, Pelosi said Democrats werewilling to compromise and keep at the

bargaining table. She saw an advantage

to continuing to try or a comprehensive

deal, because when you have a grand

bargain, you can include a lot o

things in it that might otherwise be

unacceptable in a small bargain but

i theres a shared responsibility, you

can really get a lot done.

IN THE DAYS FINAL CONVERSATION,

Peter Roskam gave the perspective o

House Republicans, talking about the

influx o new members through the

elections in 2010 and 2012 and what

those changing dynamics have meant

or policy priorities. While many o

these new members came rom the

private sector and were relatively

new to politics, Roskam said, In anutshell, theyre becoming incredibly

sophisticated members and really

learning how to deal with the legislative

process.

While expressing caution aboutoverspending, Roskam emphasized the

importance o investing in the right

way. He said that House Republicans

recognize inrastructure in particularis a unique ederal and governmental

program where the ederal government

needs to [play] a significant role.

Using the underunding o public

pensions in his home state o Illinois

as an example, Roskam stressed the

importance o addressing fiscalas an important step toward re

transormational economic g

However, he warned i, at the

level, we continue to avoid,

avoid, were going [to] underp

and well continue to see GDP [g

struggling to stay above the ma

On major issues, including taxand immigration, Roskam sug

that an incremental approac

be the best way orward. He sa

comprehensive has become

word in American politics

adding that his constituents

glaze over at the idea [that] C

Hill is going to comprehe

fix something and make allproblems go away. Alternativ

argued that by ocusing on s

areas o common ground, progr

be made, even on difficult issu

immigration reorm, he said th

connection to the economy res

deeply with Republicans an

theres a recognition that immig

reorm can be a robust producean economic growth point o vie

Responding to an audience qu

Roskam said that i he could p

fiscal reorm issue to tackle in th

year, he would choose Social S

Doing so would create a virtuous

not only stabilizing and strengt

the program, but sending a m

about Washingtons ability to slooming fiscal problems.

Peter RoskamRIL Member,

House Budget Committee


16/17

In concluding the program, Michael Peterson reiterated the days theme o the criticalconnection between our nations fiscal outlook and our economic condition. Petersonthanked the diverse lineup o speakers throughout the day, stressing the importanceo convening all perspectives to work toward fiscal and economic solutions that willincrease opportunity, mobility, and prosperity or all Americans.

In recent years, policymakers have ocused mainly on reducing near-term deficits.As a result, we have yet to address the undamental drivers o our unsustainable long-term debt. How we choose to deal with these challenges will have proound effects

on our shared economic uture. In a year o diminished urgency on this issue, the2014 Fiscal Summit brought the countrys leading thinkers and policymakers togetherto reocus the national conversation around the importance o creating a sustainablelong-term fiscal outlook. From generating public and private investment, improvingconsumer confidence, growing wages, and preparing American workers to compete inthe global economy, the conversations at the Summit demonstrated that by addressingour long-term fiscal challenges now, we can create a strong oundation or a vibrantand growing economy that benefits all Americans.

Conclusion


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For more photos and full video from the 2014 Fiscal Summit, please visit

www.iscalsummit.com.

Photos by Ralph Alswang and Chris Williams

www.pgpf.org

2014 fiscal summit book

Documents